Hillary Clinton's Massive Conflict of Interest

As American banks go hat in hand to foreign financial institutions and governments, begging for capital to help them get out of the mess into which their subprime loans have landed them, the question arises as to whether the United States should permit nations like China, Saudi Arabia, the United Arab Emirates (UAE) and the banks they control to acquire part ownership of our leading banks.

The presidential candidates discussed this issue in their Nevada debate and Hillary was asked about it in an interview with Neil Cavuto on the FOX Business Network yesterday. She replied that she would not “stand in the way” of such investments, but said that they needed to be vetted and called for more disclosure and “transparency.”

The fact is that Hillary Clinton is totally unable to be objective on this key question of our national financial sovereignty because she and her husband have been so compromised by their financial dealings with the very countries at issue in the decision.

Should the Saudi monarchy be permitted to purchase an important equity position in some of America’s leading banks? How can Hillary be objective when the very same monarchy donated $10 million to the Clinton Library and Foundation?

Should the UAE be allowed in? How can Hillary decide fairly when Bill — and therefore herself — have been getting a reported $10 million per year from a fund that administers the investments of the Emir of Dubai, the largest component state in the UAE?

The Dubai Ports deal compromised our national security by putting key points of entry in that nation’s control. But the infusion of capital and the acquisition of equity in our key banks has the potential to make that encroachment on our sovereignty seem piddling by comparison.

Former President Clinton stands to reap around $20 million -- and will sever a politically sensitive partnership tie to Dubai -- by ending his high-profile business relationship with the investment firm of billionaire friend Ron Burkle.

Mr. Clinton is negotiating to end his relationship with Mr. Burkle's Yucaipa Cos. as part of a broader effort to protect the presidential campaign of his wife, Sen. Hillary Clinton, from potential conflicts of interest. Details of Mr. Clinton's involvement in Yucaipa and his efforts to unwind it come from documents and interviews with people familiar with the matter.

The former president has had links to Yucaipa since early 2002, when Mr. Burkle -- a longtime friend and political contributor -- offered him a role there. Mr. Clinton's association with the firm began at a time when he was looking to earn large amounts of money, partly to pay heavy legal bills accumulated to defend himself and Mrs. Clinton from several investigations during his presidency.

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